Guardian Analytics raises $9 million as cybercrime rates soar

As cases of cybercrime against US business bankers reach epidemic proportions, California-based banking security firm Guardian Analytics has raised $9 million in funding, led by Sutter Hill Ventures with participation by existing investor Foundation Capital.

3 comments

Guardian Analytics raises $9 million as cybercrime rates soar

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This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The vendor says the Series C funding anticipates growing demand among financial institutions for for fraud prevention technology, with US banks suffering a wave of cyber attacks directed at businesses using the ACH wire transfer system.

Earlier this year, the company announced FraudMap for Business Banking, designed specifically to detect suspicious behavior in the multi-user business-banking environment where fraudsters have recently stolen hundreds of millions of dollars using Man-in-the-Browser attacks and networks of money mules.

Guardian Analytics' flagship software, FraudMap uses predictive behavioral analytics to monitor customer accounts in a bid to proactively prevent fraud

The five-year old company achieved record results in 2009, increasing new customer sales by 300% year-over-year and driving a 100% customer renewal rate.

Terry Austin, CEO, Guardian Analytics says: "This infusion of capital will allow us to take our market presence to the next level and will fuel our overall awareness, customer acquisition and product innovation efforts."

In conjunction with the funding, Greg Sands of Sutter Hill Ventures is joining the board of directors at Guardian Analytics. He says: "We see 2010 as a breakthrough year for the company."

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Comments: (3)

A Finextra member 

The headline above reads "...as cybercrime rates soar...", but is it true? Certainly there's an increase in particular categories of online crime, but what specifically is the claim referring to? Data compromises? Online fraud in existing accounts? Fraudulent establishment of new accounts online? Acording to our annual, US nationally-representative studies cybercrime is on the increase in some categories, but not in others. It's my observation that generalizations don't make for better security and fraud experts. Security budgets are not infinite. To make better spending decisions among limited resources, we need more facts and specifics and fewer unsupported generalizations. 

Paul Penrose Head of Research at Finextra

James, the headline reference to soaring cybercrime rates is specific to cases of ACH fraud against US small businesses (as referenced in the standfirst and throughout the story). Related links to other news include this story from November, with more data: FBI issues alert over spike in ACH fraud: https://www.finextra.com/news/fullstory.aspx?newsitemid=20694

Ed Daniel Senior Consultant, getting old you know ;-) at esdaniel.com

"using Man-in-the-Browser attacks"

Lol :-)

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